Ellenbarrie Industrial Gases IPO GMP Today: Should You Apply or Wait for Listing?
The Ellenbarrie Industrial Gases IPO has drawn plenty of attention in the Indian markets, especially as it enters its third and final day. The Grey Market Premium (GMP), which often hints at listing expectations, has seen a sharp fall today. From around ₹19 on Day 2, it has cooled down significantly to just ₹5 on Day 3.
This drop in GMP signals a shift in investor mood—but does it mean you should avoid the IPO? Or is it still a golden long-term bet?
Let’s break it all down—subscription status, company background, financial performance, expert reviews, and more—to help you decide whether to apply for Ellenbarrie Industrial Gases IPO or skip it.
Day 3 Subscription Status: What’s the Buzz?
As of June 26, which is the final subscription day:
- Retail Investors: ~42% subscribed
- Non-Institutional Investors (NII): ~81%
- Qualified Institutional Buyers (QIB): ~57%
- Total Subscription: Around 52%
This indicates a moderate overall response. While high-net-worth individuals (HNIs) and institutions have shown increasing interest, retail participation remains lukewarm, possibly due to GMP uncertainty or valuation concerns.
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Grey Market Premium (GMP) Trend: Is the Excitement Fading?
The Ellenbarrie Industrial Gases IPO today has dropped to just ₹5, compared to ₹25–26 at its peak on Day 2. Let’s quickly recap the GMP movement:
- Day 1: ₹7–₹9
- Day 2: ₹25–₹26
- Day 3: ₹18 in the morning, down to ₹5 by mid-day
While GMP is not an official metric, it gives a good sense of the unofficial listing expectations. The fall in GMP reflects investor nervousness about short-term listing gains, especially in a volatile market.
However, many investors are looking beyond listing pop and are focusing on the company’s core fundamentals and future prospects.
Ellenbarrie Industrial Gases IPO Information You Should Know
Here’s a quick glance at the core details of the IPO:
- Price Band: ₹380 to ₹400 per share
- Lot Size: 37 shares (minimum ₹14,800 for retail investors)
- Total Issue Size: ₹852.53 crore
- Fresh Issue: ₹400 crore
- Offer for Sale (OFS): ₹452.53 crore
The company plans to use the proceeds to repay debts, fund capacity expansion, and cover general corporate needs.
Company Profile: Who is Ellenbarrie Industrial Gases?
Ellenbarrie Industrial Gases Limited is no newcomer. With a presence of over 50 years in India, it supplies medical, industrial, and specialty gases to sectors like healthcare, steel, pharmaceuticals, and manufacturing.
It operates 9 production units across India and is now focusing on aggressive capacity expansion to meet rising demand.
Key Products:
- Liquid Oxygen
- Nitrogen
- Argon
- Industrial and medical gas mixtures
The company plans to boost its gas production capacity significantly in the next few years, which is a promising move from a growth perspective.
Where Will the IPO Money Go?
Here’s how Ellenbarrie plans to utilize the funds raised from the IPO:
- ₹210 crore: To repay or prepay outstanding borrowings
- ₹104.5 crore: Capital expenditure to set up a new 220 TPD air separation unit
- Remaining funds: For day-to-day operations and business expansion
This shows that the company is focused on deleveraging its balance sheet and expanding capacity, both of which could improve profitability.
Financial Snapshot: Is the Company Performing Well?
Here’s a simplified view of Ellenbarrie’s recent financials:
- Revenue Growth: Around 23% CAGR in recent years
- EBITDA Margin: ~35%
- PAT Margin: ~24%
- Return on Equity (ROE): ~17%
- Debt-to-Equity: Expected to decline after IPO
These numbers reflect strong operational efficiency and a solid bottom line. With debt coming down and revenue expected to rise through new plants, the outlook is positive.
How Does It Compare With Peers?
In the industrial gases space, Linde India is a well-known competitor. Here’s how Ellenbarrie stacks up:
- P/E Ratio: ~63x (vs Linde India at ~125x)
- Valuation: Reasonably priced compared to peers
- Post-IPO Debt Profile: Healthier, with significant repayment planned
This comparison shows that Ellenbarrie might be undervalued relative to established players, making it appealing for long-term investors.
What Are Experts Saying?
Here’s what top brokerages have to say:
- Anand Rathi: Recommends ‘Subscribe’ for long-term investors due to the company’s strong margins and capacity plans
- Cholamandalam Securities: Positive view; sees it as a good long-term portfolio addition
- SBI Securities: Bullish on the company’s future growth and improving debt metrics
- Bajaj Broking: Neutral stance citing potential risks like regional concentration and execution challenges
Most experts agree that the IPO is better suited for long-term investors rather than those seeking quick listing profits.
Risks You Should Keep in Mind
Before jumping in, consider these risks:
- Low GMP today suggests weak listing-day returns
- Sales concentration: A large portion of revenue comes from eastern India and a few top clients
- Execution risk: New plant launches and capacity expansion must go as planned
- Moderate demand: Subscription levels are not as aggressive as other IPOs this year
Important Dates to Remember
- IPO Closing Date: June 26, 2025
- Allotment Finalization: June 27, 2025
- Refund Initiation: June 30, 2025
- Listing Date (Expected): July 1, 2025
Should You Apply or Not?
✅ Apply if:
- You’re a long-term investor who believes in India’s growing industrial sector
- You prefer fundamentally strong companies with reasonable valuations
- You’re okay with moderate short-term gains but potential for significant long-term upside
❌ Avoid if:
- You’re a short-term trader focused only on listing day gains
- You expect massive oversubscription like in recent tech IPOs
- You’re uncomfortable with execution and regional risk
Final Verdict: Long-Term Potential Despite Short-Term Fluctuations
While the Grey Market Premium for Ellenbarrie Industrial Gases IPO today is low, the company’s solid financials, strong industry experience, and capacity expansion plans paint a positive picture for long-term investors.
This IPO may not deliver huge listing day fireworks, but if you’re patient and believe in steady compounding growth, Ellenbarrie could prove to be a rewarding investment in your portfolio.
